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Financial Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
 
 
March 31, 2017
 
December 31, 2016
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Money Market Funds
 
$
3

 
$
—

 
$
—

 
$
20,001

 
$
—

 
$
—

Derivative financial instruments
 
—

 
3,378

 
—

 
—

 
2,921

 
—

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
—

 
3,013

 
—

 
—

 
3,590

 
—
Schedule of derivative financial instruments
The Company had the following interest rate swaps for the periods presented (dollars in thousands):

 
Aggregate
Notional
Amount
 
 
Strike Rate
Balance Sheet Location
Fair Value
Derivative Instrument
Effective Date
Maturity Date
Low
 
High
March 31, 2017
 
December 31, 2016
Core
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
125,247

Oct 2011 - Mar 2015
Jul 2018 - Mar 2025
1.38%
—
3.77%
Other Liabilities
$
(2,515
)
 
$
(3,218
)
Interest Rate Swaps
205,134

Sep 2012 - Jul 2016
Jul 2020 - Jun 2026
1.24%
—
3.77%
Other Assets
3,224

 
2,609

 
$
330,381

 
 
 
 
 
 
$
709

 
$
(609
)
 
 
 
 
 
 
 
 
 
 
 
Fund II
 
 
 
 
 
 
 
 
 
 
Interest Rate Swap
$
19,726

Oct 2014
Nov 2021
2.88%
—
2.88%
Other Liabilities
$
(160
)
 
$
(228
)
Interest Rate Cap
29,500

Apr 2013
Apr 2018
4%
—
4%
Other Assets
—

 
—

 
$
49,226

 
 
 
 
 
 
$
(160
)
 
$
(228
)
 
 
 
 
 
 
 
 
 
 
 
Fund III
 
 
 
 
 
 
 
 
 
 
Interest Rate Cap
$
58,000

Dec 2016
Jan 2020
3%
—
3%
Other Assets
$
64

 
$
127

 
 
 
 
 
 
 
 
 
 
 
Fund IV
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
81,668

May 2014 - Mar 2017
May 2019 - Apr 2022
1.78%
—
1.98%
Other Liabilities
$
(338
)
 
$
(144
)
Interest Rate Caps
108,900

Jul 2016 - Nov 2016
Aug 2019 - Dec 2019
3%
—
3%
Other Assets
90

 
185

 
$
190,568

 
 
 
 
 
 
$
(248
)
 
$
41

 
 
 
 
 
 
 
 
 
 
 
Total asset derivatives
 
 
 
 
 
 
$
3,378

 
$
2,921

Total liability derivatives
 
 
 
 
 
 
$
(3,013
)
 
$
(3,590
)
Gain (loss) on derivative instruments within the statement of income
The following table presents the location in the financial statements of the income (losses) recognized related to the Company’s cash flow hedges (in thousands):
 
Three Months Ended March 31,
 
2017
 
2016
Amount of gain (loss) related to the effective portion recognized
in other comprehensive income (loss)
$
118

 
$
(8,819
)
Amount of loss related to the effective portion subsequently reclassified to earnings
$
—

 
$
—

Amount of gain (loss) related to the ineffective portion
and amount excluded from effectiveness testing
$
—

 
$
—
Fair value, by balance sheet grouping
Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):

 
 
 
 
March 31, 2017
 
December 31, 2016
 
 
Level
 
Carrying
Amount
 
Estimated
Fair
Value
 
Carrying
Amount
 
Estimated
Fair
Value
Notes Receivable (a)
 
3
 
$
276,507

 
$
272,347

 
$
276,163

 
$
272,052

Mortgage and Other Notes Payable, net (a)
 
3
 
1,143,049

 
1,164,861

 
1,055,728

 
1,077,926

Investment in non-traded equity securities
 
3
 
802

 
25,194

 
802

 
25,194

Unsecured notes payable, net (b)
 
2
 
358,847

 
361,559

 
432,990

 
435,779



(a)
The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.
(b)
The Company determined the estimated fair value of the unsecured notes payable using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.